As expected the Bank of England has announced its rescue package, designed to unthaw the liquidity freeze.
The initial scheme will be for £50BN, the Bank will allow lenders to swap assets (including credit card debt) for government backed bonds.
Mervyn King, the Governor of the Bank, is quoted in The Times:
"The Bank of England's special liquidity scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks."
In the event that £50BN is not enough, the package will be increased to £100BN.
It is a pity that it has taken so long for the Bank and government to act.